Yahoo buys Admovate to ramp up its mobile advertising

The technology could bring new mobile ad products in the coming months, Yahoo says

Yahoo has bought ad tech startup Admovate to grow its mobile advertising sales and provide a stronger channel for personalised display advertising.

Terms of the deal, yet another in a major buying spree for Yahoo this year, were not disclosed.

Four employees at Admovate, which has been headquartered in Mountain View, California, will be joining Yahoo's display advertising team at Yahoo's headquarters in Sunnyvale, California, a Yahoo spokeswoman said in an email.

Through its technology, Admovate claims to enable advertisers to create and deliver personalised, hyper-local targeted offers through the mobile channel. "This is especially important for mobile ad experiences that engage consumers on smaller screens," said Scott Burke, senior VP of display advertising and advertising technology at Yahoo, in a Wednesday blog post.

Admovate's services would provide a much-needed boost to Yahoo's display ad revenue, which fell by 11 per cent for the quarter ended June 30, Yahoo reported Tuesday.

Following Marissa Mayer's appointment last July as CEO of Yahoo, the company has gobbled up more than a dozen small tech startups, but Admovate stands out as an advertising purchase, and one that is not focused on consumer products.

Yahoo, which has struggled to compete against Google and Facebook's mammoth advertising operations in recent years, introduced two new ad formats in April: stream ads, a form of sponsored advertising incorporated into the company's newly launched news stream; and the Yahoo.com Billboard, providing richer content like movie trailers that let users buy tickets from within the ad.

In February, Yahoo reached a global advertising deal with Google to place more ads across its Web properties like Yahoo Sports and Yahoo News.

The company also operates its Right Media Exchange, an ad-buying platform for digital advertising companies, which includes differentiated ad networks, direct advertisers, data providers and global agencies.

The acquisition is part of the company's efforts to invest further in these types of ad tech platforms, Yahoo said, to "make buying easier for advertisers and agencies." The deal could yield new ad products for Yahoo's global advertisers and partners in the coming months, the company said.

"We are investing more deeply in programmatic buying and mobile advertising," Yahoo's Burke said, adding, "Admovate's personalization technology accelerates our capabilities in mobile advertising, and we gain an exceptionally talented technical team."

Yahoo's smaller acquisitions this year, which also include Xobni, GoPollGo and Astrid, may indeed be geared more toward acquiring talent than the products themselves, Mayer and CFO Ken Goldman signaled Tuesday during the company's second-quarter earnings call.

"In lieu of hiring, we've acquired these companies ... for talent and expertise," Goldman said. And, "We're going to continue the pace of doing these smaller deals," Mayer said, which she referred to as tuck-in acquisitions.

In the past 12 months, Yahoo has grown its dedicated mobile team by a factor of six, Mayer said, going from dozens of engineers to hundreds of engineers.

Beefing up its ad technologies, particularly in display, will be a focus at Yahoo during the remainder of the year, Mayer also said during Tuesday's call.

Few additional details about Admovate's products or services, which may not even have launched yet, are given on the company's website.

"We'd like to thank everyone who supported us along the way: Our partners, our advisors and our investors," the landing page reads. Admovate was founded just last year.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

Maintaining trust in a sceptical world: The power of brand trust

The faith people have in brands creates opportunity for those brands to become trusted advisors. In turn, this builds success by increasing the brand’s profile, letting it broaden its product offering and driving stronger customer loyalty.

Dan Ratner

managing director, uberbrand

When growth stalls: How to boost growth in large organisations

The push to start new businesses continues. In Q1 2017, the number of seed and angel deals increased by 1.4 per cent compared to Q1 2016.

Con Frantzeskos

CEO, Penso

Why we need diversity in marketing

​When we read articles about the need for increased diversity in marketing land, it is often through the lens of gender.

Jodie Sangster

CEO, ADMA

Interesting insight, well explained and the examples are just apt.Thanks for sharing!

FreshMindIdeas

The politics of branding - Brand science - CMO Australia

Read more

When the world that we live in floods with gigabytes of content every day, we have to learn to be selective about it. Such educational we...

Paulina Cameron

ADMA launches education program to tackle viewability, ad fraud and brand safety

Read more

Hi, i am an Aistralian ALK patient, been on xalkori dec 13 to oct 15 and achieved remission of disease, since been on Ceritinib until no...

gary packer

Pfizer Australia adopts AI-powered digital analyst tool for sales and marketing decision making

Read more

Hi James, shouldn't marketers also be focusing on collecting and utilizing up to date first-party profiling data on customers so that mes...

Tom

3 ways customer data can increase online sales conversion

Read more

Wouldn't reconnecting with younger consumers be in direct contravention of the code on alcohol advertising?

Tim Palmer

Vodka Cruiser reconnects with younger consumers via category-first Facebook Live campaign

Read more

Latest Podcast

Getting Intimate with CX Ep 5: Tammy Marshall, founder, The B Hive

How much of customer experience is having the foresight to know what those individuals might like, versus asking them? In Episode 5 of this new podcast series, BrandHook MD, Pip Stocks, talks with Tammy Marshall about the importance of asking your customers questions, how consistency plays a role in engagement, but how the unexpected adds extra value.

More podcasts

Sign in